Good morning! Today, we talk about the government punting on the income tax reform idea. Congress is trying to get closer to Saudi Arabia. And Belém preparations for the climate conference.
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Haddad punts on income tax reform
The sweeping tax reform passed in December established that the government would, within three months, present a proposal to reform Brazil’s regressive income tax system. That deadline has come and gone, but no proposal has been put forward — confirming that the issue will not be an immediate priority for the Luiz Inácio Lula da Silva administration.
Yes, but … Prior to taking office, Finance Minister Fernando Haddad said Lula had told him to “put the poor in the budget and make the rich pay more income tax.”
👉 Why it matters. One cannot understand the dynamics of wealth inequality in Brazil without looking at the issue of taxation. Besides being regressive, Brazil’s tax structure relies heavily on taxing consumption rather than income, placing the burden disproportionately on lower-income taxpayers.
First things first. Finance...